Banks, NBFCs sanction over Rs 71,200 crore worth loans for renewable energy in one year

Last year, financial companies had committed to provide debt funding to renewable energy projects aggregating to over 78.75 GW during the span on next five years. The loans sanctioned till March 21 this year are 18.63% of the commitment made.ETEnergyWorld | April 11, 2016, 18:14 IST

NEW DELHI: Forty banks and non-banking financial companies have sanctioned Rs 71,201.54 crore to finance the various renewable energy projects and disbursed Rs 29,529.57 crore against the sanctioned amount in the last one year.

This sanction a part of commitment made by them during RE-INVEST 2015.

Last year, financial companies had committed to provide debt funding to renewable energy projects aggregating to over 78.75 GW during the span on next five years.

The loans sanctioned till March 21 this year are 18.63% of the commitment made.

“The commitments made by country’s Banks & NBFCs to finance RE projects and agreements with Foreign Banks& FIs to provide low cost and on long term funding are expected to boost the growth of the Indian renewable energy sector,” an official release said.

RE-INVEST 2015, organised by the Ministry of New and Renewable energy, saw renewable energy capacity commitments of over 283 GW from stakeholders. Further, there was commitment of over 62 GW of manufacturing of renewable energy equipment in India.

The Government has set an ambitious target of 175 GW of Renewable Energy capacities by 2022, achieving which would require capital outlay of $160 billion including equity of $40 billion.

The Indian Renewable Energy Development Agency (IREDA) is also providing loans at low rates following its recent agreements with banks like KfW, AFD, Nordic Investment Bank, World Bank, Asian Development Bank, the European Investment Bank, and Japan International Cooperation Agency.